Corporate Social Responsibility, Intellectual Capital and Leverage on Firm Value with Profitability as a Moderating Variable

Abstract

The rise in stock prices indicates that a company has promising future prospects, thereby boosting its perceived value among investors. The higher the share price, the higher the firm value. The aim of this research is to determine the role of profitability in moderating the relationship between corporate social responsibility, intellectual capital and leverage on firm value. The population of this research uses mining sector companies listed on the Indonesia Stock Exchange in 2018-2022. Sampling used a purposive sampling technique to obtain 75 data from 15 companies that met the criteria. This research method is quantitative research with data analysis techniques, namely multiple regression analysis and moderated regression analysis (MRA) using SPSS 23 software. The results of this research show that corporate social responsibility has an effect on firm value, intellectual capital and leverage have no effect on firm value. Profitability is not able to moderate corporate social responsibility on firm value. Profitability is able to moderate intellectual capital and leverage on firm value. The implications of this study include the need for companies to carefully consider allocation strategies for corporate social responsibility, taking into account improvements in other financial performances to avoid a decline in firm value. Effective management of intellectual capital should be accompanied by high profitability, and high profitability should be balanced with leverage ratio to maximize firm value. Well-integrated financial strategies considering various factors will help companies enhance their value in the market.